15/03/2013
Connective EMagazine
In this issue:
Welcome to our March newsletter
While the Reserve Bank of Australia appears to be erring on the side of caution,
recent data suggests the Australian economy is heading in the right direction
Mortgage holders and potential homebuyers are off to a great start this autumn,
with the Reserve Bank of Australia (RBA) leaving rates unchanged at 3.0 per cent at
its March board meeting.
The decision surprised few economists, with the effects of last year’s rate cuts only
now starting to emerge. In 2012, the RBA took a scalpel to the official cash rate,
slashing 1.25 basis points over the year.
RBA governor Glenn Stevens said it was prudent to wait and see what effect the
cuts will have on the Australian economy and consumer confidence.
March 2013
“The board’s view is that with inflation likely to be consistent with the target, and with
growth likely to be a little below trend over the coming year, an accommodative
stance on monetary policy is appropriate,” Mr Stevens said.
“The inflation outlook, as assessed at present, would afford scope to ease policy
further, should that be necessary to support demand.”
Despite the RBA’s hesitation, however, early signs are emerging that the Reserve
Bank is heading down the right path in creating a strong economy.
New home sales have continued an upward trend in recent months and January
proved to be no exception. According to the Housing Industry Association (HIA) New
Home Sales report, seasonally adjusted new home sales increased by 4.2 per
cent in January.
“Over the three months to January this year, new home sales increased by 10 per
cent,” HIA chief economist Harley Dale said. “It is a promising update to see the
momentum of late 2012 carrying into [2013].”
Property sales aren’t the only sector posting some modest improvements, with new
research suggesting house prices are creeping up slowly.
New data indicates the Australian property market is definitely on the way up, with
capital city values climbing 0.3 per cent in February. According to RP Data’s
February Hedonic Home Value Index, capital city values climbed 0.3 per cent in
February; this follows a 1.2 per cent rise in January. These results are a reflection of
the RBA’s decision to ease the official cash rate.
It appears the quarterly trend rate of housing value growth is slightly higher than
inflation and pretty much in line with wages growth, which one could argue is
exactly what the RBA is hoping for.
While it is still too early to predict the full impact of the Reserve Bank’s recent
stance on interest rates, Craig James, chief economist at CommSec, believes the
Australian economy is in safe hands.
“The Aussie dollar has eased, home prices have risen, job ads are recovering,
share markets have trended higher and retail spending rose in January while
retailers are reporting better sales for February,” Mr James said.
If you would like to discuss any of the developments outlined in our March
newsletter, give us a call today.
Sincerely, Carrie Townsend
Financing your business
Does your business need a new vehicle, computers or tools? Plant and
equipment finance allows enterprises of every size to access important
equipment sooner
Owning your own business is tough – sometimes very tough. From finding the right
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Owning your own business is tough – sometimes very tough. From finding the right
staff to managing taxes, super, payroll... The list goes on and on and on.
There is also the added pressure of funding the business. New staff need new
computers, desks and chairs, and you might also need tools or cars – all the
essentials for maintaining a profitable and successful company. With
approximately one in 10 Australians self-employed, finding affordable loans to fund
a growing business is a concern for more than 2.1 million people.
If you are a business owner struggling to keep up with a fast evolving market, there
are ways we can help you. In fact, with plant and equipment finance we can not only
help your business stay afloat but ensure it maintains a competitive advantage!
As with home loans, there are various plant and equipment finance options. Each
option will have its own benefits and drawbacks; however, the key characteristics of
most plant and equipment finance loans are very similar.
Most plant and equipment loans require the selected lender or finance provider to
purchase the goods on behalf of the business or individual. The business then
hires or leases the items from the lender over an agreed period of time for a fixed
rate.
Some loan options are better suited to specific commercial items. For instance, an
operating lease is generally specific to computer hardware and software, while a
maintained (novated) lease is commonly used for motor vehicles or transport
expenses.
On average, the loan will have a life span of between one and five years, with loan
repayments based on a monthly, quarterly, bi-annual or yearly period.
There are also various tax benefits. As a business owner, you can claim the
depreciation of the goods and the interest component of your repayments as a
business expense, meaning a larger tax refund and more money in your back
pocket.
Finding the finance option that is best suited to you and your business can be
confusing, but that is where we come in.
We can assist your business by finding you the most affordable loan tailored to your
own individual business needs and goals. We can also ensure you reap the
various tax benefits associated with your loan.
To discuss the needs of your business and your finance options, give us a call
today.
Buying with confidence
Securing pre-approved finance could mean the difference between just finding
your dream home and actually being able to buy it
After months of scouring the housing market, you have finally found your dream
home or ideal investment property. The estate agent tells you there are two other
couples interested in buying the property and it would be wise to lay an offer on the
table.
You quickly contact your mortgage broker only to find out the bank won’t lend you the
necessary funds and so your dream home starts to slip away from you.
Unfortunately, this occurs all too often for many would-be home buyers. But it is one
situation that can be easily avoided with the help of a pre-approved loan.
Pre-approved finance is essentially a guarantee from a lender that they will loan you
an agreed sum before you have made a commitment to buying a specific property.
With this guarantee in your pocket, you will have more confidence when the time
comes to make an offer.
Already having the cash at your fingertips also gives you significant bargaining
power. In most instances, vendors are looking to achieve a swift and simple sale
and knowing you can provide a fast settlement may entice them to knock a little off
their asking price.
So, how exactly do you obtain pre-approved finance?
It’s actually quite simple. Your selected lender will calculate your borrowing capacity
based on a general assessment of your current financial situation and income. The
entire process can be quite quick, with some lenders offering approval in just a
matter of minutes.
Once confirmed, your pre-approval will last for up to three months, ensuring you
have plenty of time to shop for your dream home.
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have plenty of time to shop for your dream home.
If you are interested in obtaining pre-approval, give us a call today. From assessing
your current financial situation to finding the most suitable home loan product
available, we can do it all!
Getting the most out of your agent
Real estate agents come with a wealth of knowledge that will help them sell your
home, but they also come at a price. To get the most out of your agent, we
suggest you follow these simple steps
When it comes to selling your property, the help of a professional real estate agent
is invaluable. But if you really want to make the most of their knowledge, expertise
and experience, it pays to come prepared.
Outline your goals
During the initial meeting with your agent, set clear goals and outline what you
expect from the partnership. Identify areas where you might be willing to
compromise, such as small repairs and inspections, and other areas that are nonnegotiable, such as contract terms and your minimum price.
Property value analysis
A property value analysis is a great way to determine the estimated value of your
property compared with similar properties in the area and the property market in
general. Real estate agents should be able to put this together based on recent
sales history and local market data. This will help clarify your expectations, while
identifying the best marketing strategies.
The finer details
Dealing with the legal and financial paperwork involved in the sale of your house
can be both tedious and time consuming. Thankfully, this can be where your real
estate agent really shines. Agents deal with these contracts day in day out, and are
therefore a goldmine of information.
Chat through the various legal and financial obligations. That way, if you do decide
to move again in the future you will have a greater understanding of what’s involved
when selling your home. Remember though that when it comes to the legal
aspects of the transaction, there is no substitute for a solicitor or other legal
professional.
Keep communication lines open
To have the best chance of selling your home for a good price, it is important to
keep in constant communication with your agent and make yourself available as
often as possible.
Be ready for viewings as soon as you put your house on the market and ensure any
minor repairs have been conducted prior to engaging a real estate agent. The more
people your agent can show your home to, the easier it will be to sell, and chances
are your agent will already have a list of potential buyers eager to inspect your
house.
Wine review
App review
2012 Boab Tree Semillon Sauvignon
Blanc
SnapShop Showroom
So we are now in Autumn, and as the
weather changes, so should your vino!
This Riverina wine is a light, simple but
well-made dry white, with subtle vegetal
aromas, a note of green-salad leaf and a
hint of nuttiness. It's soft, full and dry on the
palate, clean and with better intensity and
palate weight than is usual at this price
level.
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Visualise furniture in your own home (or future home!) using
augmented reality. SnapShop gives you confidence that a sofa
or chair looks great in your living room before you buy. Whether
you're looking for a new couch, or just having fun coming up
with ideas for a future remodel, SnapShop is the perfect tool to
imagine how it might look and get feedback from friends. There
was an earlier version of SnapShop that reviewers didn’t love,
but developers went away and created an improved interface
and the ability to preview multiple furniture items at the same
time! It’s a bit of fun.
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Contact us
Carrie Townsend
Mobile: 0402 732 107
Fax: 02 4733 1779
Email: [email protected]
Website: www.validus.com.au
Address:
PO BOX 7145 Penrith South NSW 2750
MFAA: 146348
ACN: 150110937
Australian Credit Licence Number: 389328
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Disclaimer. This newsletter does not necessarily reflect the opinion of the publisher or supplier. It is intended to provide general
news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the
publishers, supplier, authors nor their employees, can be held liable for any inaccuracies, errors or omission. Copyright is reserved
throughout. No part of this publication can be reproduced or reprinted without the express permission of the publisher and
supplier. All information is current as at publication release and the publishers or suppliers take no responsibility for any factors
that may change thereafter. Readers are advised to contact their financial adviser, broker or accountant before making any
investment decisions and should not rely on this newsletter as a substitute for professional advice.
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